If you do not mean "merge" the data sets, but rather "merge" the records (i.e., merge a record from File1 with a record from File2), let me know and I can provide you with the JCL for a SyncSort JOIN application.

It will help if you use "real" record and field names and show sample content for those names. Things like account number, amount-due, zip-code, etc.

Keep in mind that a file typically contains records and records contain fields. Every time a file "read" is issued one record is read, not one field.
When posting technical questions it is best to stay with the existing terminology and not introduce new ways of saying things.